System and method for replenishing quantities of trading orders

ABSTRACT

A system for replenishing trading orders comprises a memory coupled to a processor. The memory stores a trading order comprising a total quantity of a product, and at least one formula to determine a displayed quantity for the trading order. The processor applies the formula to determine the displayed quantity. The processor further determines a reserved quantity based on the determined displayed quantity and the total quantity. The processor communicates the trading order having the determined displayed quantity and the determined reserved quantity.

RELATED APPLICATIONS

This patent application is a continuation of U.S. patent applicationSer. No. 11/499,830, filed Aug. 3, 2006 now U.S. Pat. No. 7,644,031,which claims the benefit of U.S. Patent Application Ser. No. 60/705,782,filed Aug. 4, 2005 entitled “System and Method for ReplenishingDisplayed Quantities of Trading Orders.”

TECHNICAL FIELD OF THE INVENTION

The present invention relates generally to electronic trading and morespecifically to a system for replenishing quantities of trading orders.

In recent years, electronic trading systems have gained wide spreadacceptance for trading of a wide variety of items, such as goods,services, financial instruments, and commodities. For example,electronic trading systems have been created which facilitate thetrading of financial instruments and commodities such as stocks, bonds,currency, futures contracts, oil, and gold.

Many of these electronic trading systems use a bid/offer process inwhich bids and offers are submitted to the systems by a passive side andthen those bids and offers are hit or lifted (or taken) by an aggressiveside. For example, a passive trading counterparty may submit a “bid” tobuy a particular trading product. In response to such a bid, anaggressive side counterparty may submit a “hit” in order to indicate awillingness to sell the trading product to the first counterparty at thegiven price. Alternatively, a passive side counterparty may submit an“offer” to sell the particular trading product at the given price, andthen the aggressive side counterparty may submit a “lift” (or “take”) inresponse to the offer to indicate a willingness to buy the tradingproduct from the passive side counterparty at the given price.

SUMMARY OF THE INVENTION

In accordance with the present invention, the disadvantages and problemsassociated with prior electronic trading systems have been substantiallyreduced or eliminated.

In one embodiment, a system for replenishing trading orders comprises amemory coupled to a processor. The memory stores a trading ordercomprising a total quantity of a product, and at least one formula todetermine a displayed quantity for the trading order. The processorapplies the formula to determine the displayed quantity. The processorfurther determines a reserved quantity based on the determined displayedquantity and the total quantity. The processor communicates the tradingorder having the determined displayed quantity and the determinedreserved quantity. The formula may be used to generate a random value.

In another embodiment, a system for replenishing trading orderscomprises a memory coupled to a processor. The memory stores a tradingorder comprising a total quantity of a product, and at least one formulato determine a reserved quantity for the trading order. The processorapplies the formula to determine the reserved quantity. The processorfurther determines a displayed quantity based on the determined reservedquantity and the total quantity. The processor communicates the tradingorder having the determined displayed quantity and the determinedreserved quantity. The formula may be used to generate a random value.

Various embodiments of the present invention may benefit from numerousadvantages. It should be noted that one or more embodiments may benefitfrom some, none, or all of the advantages discussed below.

One advantage is that the trading platform of the present system usesone or more formulas to determine replenishment amounts so as todisguise the actions of a particular trader. When other traders seemultiple transactions involving the same amount of the same tradingproduct, those other traders may guess that a single trader isincrementally purchasing or selling a large amount of that tradingproduct. By replenishing the displayed quantity (or reserved quantity)of a particular trading order using one or more formulas, the tradingplatform may generate multiple transactions involving different amountsof a trading product. Thus, the trading platform may disguise the factthat a single trader is buying or selling a large amount of a tradingproduct. The formula may be used to generate a random value. Inaddition, the trading platform may become more or less aggressive duringthe course of filling trading orders according to the formulas that areused.

Other advantages will be readily apparent to one having ordinary skillin the art from the following figures, descriptions, and claims.

BRIEF DESCRIPTION OF THE DRAWINGS

For a more complete understanding of the present invention and itsadvantages, reference is now made to the following description, taken inconjunction with the accompanying drawings, in which:

FIG. 1 illustrates one embodiment of a trading system in accordance withthe present invention;

FIGS. 2-3 illustrate flowcharts of methods for randomly replenishingquantities of a trading order; and

FIGS. 4-5 illustrate flowcharts of a method for replenishing quantitiesof a trading order according to a formula.

DETAILED DESCRIPTION OF THE INVENTION

FIG. 1 illustrates one embodiment of a trading system 10. Generally,trading system 10 comprises a trading platform 50 communicativelyconnected to clients 20, networks 30, and market centers 40. Tradingplatform 50 may receive and process trading orders 12 from traders 70. Agiven trading order 12 may comprise two parts—a “displayed quantity” anda “reserved quantity.” In placing trading order 12, trader 70 mayindicate that only a portion of the total quantity of trading order 12should be displayed to other traders 70. This portion of trading order12 to be displayed to other traders 70 is referred to as the “displayedquantity.” The remaining portion of trading order 12 is referred to asthe “reserved quantity.” Designating a portion of trading order 12 as a“reserved quantity” allows trader 70 to enter a large trading order 12while only displaying a portion of that trading order 12 to othertraders 70. Trading platform 50 may incrementally fill a particulartrading order 12 by first filling the displayed quantity of that tradingorder 12 and then using the reserved quantity to replenish the displayedquantity of that trading order 12. According to certain embodiments, thetrading platform 50 replenishes the displayed quantities of tradingorders 12 in a manner that disguises the actions of a particular trader70.

Trading orders 12 generally comprise orders 12 a and counterorders 12 b.Orders 12 a and counterorders 12 b may be buy orders 14 and sell orders16. Orders 12 a and counterorders 12 b are complementary actions suchas, for example, buying and selling. If an order 12 a refers to a buyorder 14, then a counterorder 12 b refers to a sell order 16.Conversely, if an order 12 a refers to a sell order 16, then acounterorder 12 b refers to a buy order 14. A buy order 14 is a requestto buy a particular quantity of a particular trading product (e.g., bidrequest). A sell order 16 is a request to sell a particular quantity ofa particular trading product (e.g., offer request). In particularembodiments, trading order 12 may specify a target price (e.g., targetbid price or target offer price) for the trading product. Althoughsystem 10 is exemplified below using equities as the trading product,the trading product that forms the basis of trading order 12 maycomprise any goods, services, financial instruments, commodities, etc.Examples of financial instruments include, but are not limited to,stocks, bonds, and futures contracts.

Clients 20 are operable to receive trading orders 12 from traders 70 andto send trading orders 12 to trading platform 50 and/or market centers40. Clients 20 comprise any suitable local or remote end-user devicesthat may be used by traders 70 to access one or more elements of tradingsystem 10, such as trading platform 50. A particular client 20 maycomprise a computer, workstation, telephone, Internet browser,electronic notebook, Personal Digital Assistant (PDA), pager, or anyother suitable device (wireless or otherwise), component, or elementcapable of receiving, processing, storing, and/or communicatinginformation with other components of system 10. Client 20 may alsocomprise any suitable user interface such as a display, microphone,keypad, keyboard, touch screen, or any other appropriate terminalequipment according to particular configurations and arrangements. Itwill be understood that there may be any number of clients 20communicatively connected to trading platform 50. In addition, there maybe any number of clients 20 communicatively connected to market centers40 without using trading platform 50.

Although clients 20 are described herein as being used by “traders” 70,it should be understood that the term “trader” is meant to broadly applyto any user of trading system 10, whether that user is an agent actingon behalf of a principal, a principal, an individual, a legal entity(such as a corporation), or any machine or mechanism that is capable ofplacing and/or responding to trading orders 12 in system 10.

According to certain embodiments, traders 70 may include market makers.A market maker may include any individual or firm that submits and/ormaintains either or both bid and offer trading orders 12 simultaneouslyfor the same instrument. For example, a market maker may include anindividual or firm, such as a brokerage or bank, that maintains either afirm bid and/or offer price in a given security by standing ready,willing, and able to buy and/or sell that security at publicly quotedprices. A market maker generally displays bid and/or offer prices forspecific numbers of specific securities, and if these prices are met,the market maker will immediately buy for and/or sell from its ownaccounts. According to certain embodiments, a single trading order 12may be filled by a number of market makers at potentially differentprices.

Networks 30 are communication platforms operable to exchange data orinformation between clients 20 and trading platform 50 and/or marketcenters 40. According to certain embodiments, a particular network 30may represent an Internet architecture which provides clients 20 withthe ability to communicate trading or transaction information to tradingplatform 50 and/or market centers 40. According to certain embodiments,network 30 comprises a plain old telephone system (POTS), which traders70 may use to perform the same operations and functions. Transactionsmay be assisted by a broker associated with trading platform 50 ormanually keyed into a telephone or other suitable electronic device torequest that a transaction be executed. In certain embodiments, network30 may be any packet data network (PDN) offering a communicationsinterface or exchange between any two nodes in system 10. Network 30 mayfurther comprise any combination of local area network (LAN),metropolitan area network (MAN), wide area network (WAN), wireless localarea network (WLAN), virtual private network (VPN), intranet, or anyother appropriate architecture or system that facilitates communicationsbetween clients 20 and trading platform 50 and/or market centers 40.

Market centers 40 comprise all manner of order execution venuesincluding exchanges, Electronic Communication Networks (ECNs),Alternative Trading Systems (ATSs), market makers, or any other suitablemarket participants. Each market center 40 maintains a bid and offerprice for a given trading product by standing ready, willing, and ableto buy or sell that trading product at publicly quoted prices, alsoreferred to as market center prices. Different market centers 40 mayprovide different market center prices for particular trading products.For example, a particular market center 40 may offer a particular bidprice and/or offer price for a particular trading product, while anothermarket center 40 may offer a different bid price and/or offer price forthe same trading product. A particular market center 40 may charge atransaction cost to execute trading orders 12 that remain in the orderbooks of that market center 40 for more than a certain length of time.Different market centers 40 may have different policies regarding thedisclosure of various details of trading orders 12. For example, certainmarket centers 40 referred to as “cooperative” market centers maydisclose both the displayed quantities and the reserved quantities oftrading orders 12 to trading platform 50. Other market centers 40referred to as “non-cooperative” market centers may disclose only thedisplayed quantities of trading orders 12 to trading platform 50.

Trading platform 50 is a trading architecture that facilitates therouting, matching, and otherwise processing of trading orders 12.Trading platform 50 may comprise a management center or a headquarteringoffice for any person, business, or entity that seeks to route, match,process, or fill trading orders 12. Accordingly, trading platform 50 mayinclude any suitable combination of hardware, software, personnel,devices, components, elements, or objects that may be utilized orimplemented to achieve the operations and functions of an administrativebody or a supervising entity that manages or administers a tradingenvironment. In certain embodiments, trading platform 50 comprisesclient interface 52, market interface 54, processor 56, and memorymodule 60.

Client interface 52 of trading platform 50 is communicatively connectedto network 30 and supports communications between clients 20 and thevarious components of trading platform 50. According to certainembodiments, client interface 52 comprises a transaction server thatreceives trading orders 12 communicated by clients 20 via network 30.

Market interface 54 is communicatively connected to market centers 40and supports communications between market centers 40 and the variouscomponents of trading platform 50. Market interface 54 may comprise atransaction server that receives trading orders 12 communicated bymarket centers 40. Market interface 54 may be operable to send to marketcenters 40 trading orders 12 received from clients 20 connected directlyto trading platform 50.

Client interface 52 and market interface 54 are communicativelyconnected to processor 56. Processor 56 is operable to record tradingorders 12 in memory module 60 and route trading orders 12 to marketcenters 40. Processor 56 is further operable to execute logic 62 storedin memory module 60 to match buy orders 14 and sell orders 16 receivedby client interface 52 and market interface 54. In addition, processor56 is operable to incrementally fill a particular trading order 12 byusing the reserved quantity of that trading order 12 to replenish thedisplayed quantity of that trading order 12. Processor 56 may compriseany suitable combination of hardware and software implemented in one ormore modules to provide the described functions or operations.

Memory module 60 comprises any suitable arrangement of random accessmemory (RAM), read only memory (ROM), magnetic computer disk, CD-ROM, orother magnetic or optical storage media, or any other volatile ornon-volatile memory devices that store one or more files, lists, tables,or other arrangements of information such as trading orders 12. AlthoughFIG. 1 illustrates memory module 60 as internal to trading platform 50,it should be understood that memory module 60 may be internal orexternal to components of trading system 10, depending on particularimplementations. Also, memory module 60 illustrated in FIG. 1 may beseparate or integral to other memory devices to achieve any suitablearrangement of memory devices for use in trading system 10.

According to certain embodiments, memory module 60 comprises logic 62.Generally, logic 62 comprises software instructions for routing,matching, processing, or filling trading orders 12. Processor 56 isoperable to execute logic 62 in memory module 60 to match buy orders 14and sell orders 16 and to determine the priority of traders 70associated with those buy orders 14 and sell orders 16. Processor 56 isfurther operable to execute logic 62 in memory module 60 to determinethe manner in which to replenish the displayed quantity of a particulartrading order 12. Generally, the manner and sequence in which tradingorders 12 are filled is based at least in part on the sequence in whichtrading platform 50 receives each trading order 12. In certainembodiments, the manner and sequence in which trading orders 12 arefilled is also based at least in part on the size of the displayedquantity of a particular trading order 12 relative to the size of thereserved quantity of that trading order 12. By replenishing thedisplayed quantities of trading orders 12, trading platform 50 maydisguise the actions of a particular trader 70.

It should be understood that the internal structure of trading platform50 and the interfaces, processors, and memory devices associatedtherewith is malleable and can be readily changed, modified, rearranged,or reconfigured in order to achieve the intended operations of tradingplatform 50.

Trading platform 50 may fill a particular trading order 12 in randomincrements to disguise the actions of trader 70 associated with thattrading order 12. According to certain embodiments, trader 70 inputsinto client 20 the total quantity of a particular trading order 12. Inaddition, trader 70 inputs into client 20 a range for the displayedquantity of that trading order 12. Client 20 sends the total quantity ofthat trading order 12 and the range for the displayed quantity of thattrading order 12 to trading platform 50. Processor 56 then randomlyselects a number within the range indicated by trader 70. This number isreferred to as the replenishment amount. Processor 56 sets the displayedquantity of the particular trading order 12 to be equal to thereplenishment amount. In another embodiment, trading order 12 specifiesan initial displayed quantity and platform 50 determines subsequentdisplayed quantities based at least in part upon randomly determinedreplenishment amounts. The random increments may be determined accordingto any suitable method including, for example, by using a random numbergenerator to generate a random value, applying a formula to generate arandom value, determining a random value from a range of values, anddetermining a random value by using values derived from other valuesand/or external events (e.g., using the last digit of each of the DOW,FTSE, NASDAQ, etc. at a given point in time to determine a random orpseudo-random value).

An example illustrates certain embodiments of the present invention.Trader 70 a inputs into client 20 a buy order 14 a for 1,000 shares ofproduct X. In addition, trader 70 a inputs into client 20 a the range of80 to 120 shares as the range for the displayed quantity of buy order 14a. Client 20 a sends buy order 14 a and the range of 80 to 120 shares totrading platform 50. Processor 56 then randomly selects a number between80 and 120 to be the replenishment amount. For instance, processor 56may randomly select the number 92 to be the replenishment amount.Processor 56 then sets the displayed quantity of buy order 14 a to be 92shares. Consequently, the reserved quantity of buy order 14 a is 808shares.

According to certain embodiments, trading platform 50 is operable torepeatedly replenish the displayed quantity of a particular tradingorder 12. In particular, after setting the displayed quantity of aparticular trading order 12 to be equal to the replenishment amount,trading platform 50 displays the displayed quantity of that tradingorder 12 to market center 40. Subsequently, the displayed quantity oftrading order 12 is filled with a corresponding counterorder 12 b. Inorder to replenish the displayed quantity of trading order 12, processor56 randomly selects a second number within the range indicated by trader70. This second number is the new replenishment amount. Using a portionof the reserved quantity of trading order 12, processor 56 sets thedisplayed quantity of trading order 12 to be equal to the newreplenishment amount. Trading platform 50 displays the displayedquantity of trading order 12 to market center 40. When the displayedquantity of that trading order 12 is filled with a correspondingcounterorder 12 b, trading platform 50 repeats the process until all oftrading order 12 is filled.

In the preceding example, processor 56 set the initial displayedquantity of buy order 14 a to be 92 shares. Processor 56 then displaysthe displayed quantity of 92 shares of buy order 14 a to market center40. Subsequently, the displayed quantity of buy order 14 a is filledwith 92 shares of product X from a corresponding counterorder 12 b. Inorder to replenish the displayed quantity of buy order 14 a, processor56 randomly selects a number between 80 and 120. For instance, processor56 may select the number 81. By using the reserved quantity of buy order14 a, processor 56 sets the displayed quantity of buy order 14 a to be81 shares. The reserved quantity of buy order 14 a is reduced to 727shares. Trading platform 50 displays the displayed quantity of 81 sharesto market center 40. Subsequently, the displayed quantity of buy order14 a is filled with 81 shares of product X from a correspondingcounterorder 12 b. When the displayed quantity of buy order 14 a isfilled, processor 56 selects another random number from the rangeindicated by trader 70 in order to replenish the displayed quantity ofbuy order 14 a. This process is repeated until all 1,000 shares of buyorder 14 a are filled.

System 10 has several important technical advantages. Variousembodiments of system 10 may have none, some, or all of theseadvantages. One advantage is that platform 50 uses randomly selectedreplenishment amounts to disguise the actions of a particular trader 70.When other traders 70 see multiple transactions involving the sameamount of the same trading product, those other traders 70 may guessthat a single trader 70 is incrementally purchasing or selling a largeamount of that trading product. By randomly replenishing the displayedquantity of a particular trading order 12, trading platform 50 maygenerate multiple transactions involving different amounts of a tradingproduct. Thus, trading platform 50 may disguise the fact that a singletrader 70 is buying or selling a large amount of a trading product.

According to certain embodiments, trading platform 50 may replenish thedisplayed quantity of a particular trading order 12 based on one or moreformulas selected by trader 70. When trader 70 submits trading order 12to trading platform 50, trading platform 50 may request trader 70 toindicate an initial displayed quantity and to indicate a formula forreplenishing the displayed quantity of trading order 12. According tocertain embodiments, trading platform 50 may fill the initial displayedquantity of trading order 12 with a corresponding counterorder 12 b.Trading platform 50 then determines a replenishment amount based on theformula indicated by trader 70. According to certain embodiments,trading platform 50 replenishes the displayed quantity of trading order12 with the replenishment amount using the reserved quantity of tradingorder 12. According to certain embodiments, trading platform 50 thenfills the displayed quantity of trading order 12 with a correspondingcounterorder 12 b. Trading platform 50 repeats this process until all oftrading order 12 is filled.

In another embodiment, trading order 12 does not specify an initialdisplayed quantity. Rather, platform 50 uses the formula to determinethe initial displayed quantity and the replenishment amounts describedabove for subsequent displayed quantities. As described above, theformula may be used to generate a random value.

The formula indicated by trader 70 may be any algorithm, equation,table, or logic suitable for replenishing the displayed quantity oftrading order 12. In some embodiments, trader 70 may indicate a formulaby inputting a formula into client 20 or by selecting a formula storedin client 20 or another node of system 10. According to certainembodiments, trader 70 may indicate a formula that increases thedisplayed quantity of trading order 12 each time the displayed quantityof trading order 12 is replenished. Such a formula may allow tradingplatform 50 to become more aggressive in filling a particular tradingorder 12 as that trading order 12 is incrementally filled. According tocertain embodiments, trader 70 may indicate a formula that decreases thedisplayed quantity of trading order 12 each time the displayed quantityof trading order 12 is replenished. Such a formula may allow tradingplatform 50 to become less aggressive in filling a particular tradingorder 12 as that trading order 12 is incrementally filled.

An example illustrates certain embodiments of the present invention.Trader 70 a submits buy order 14 a for 1,000 shares of product A. Trader70 a indicates an initial displayed quantity of 100 shares. In addition,trader 70 a indicates the following formula for determining thereplenishment amount of buy order 14 a:replenishment_amount=initial_displayed_quantity+10*n where “n” equalsthe number of times the displayed quantity of buy order 14 a has beenfilled. According to certain embodiments, trading platform 50 displaysthe initial displayed quantity of buy order 14 a—100 shares of productA—to other traders 70 and to market centers 40. In the present example,trading platform 50 fills the displayed quantity of buy order 14 a with100 shares of product A from a corresponding sell order 16. Afterfilling the initial displayed quantity of buy order 14 a, tradingplatform 50 determines a replenishment amount based on the formulaindicated by trader 70 a. In this instance, the replenishment amountequals 110 shares because the displayed quantity has been filled once.After determining the replenishment amount, trading platform 50replenishes the displayed quantity of buy order 14 a with 110 sharesfrom the reserved quantity of buy order 14 a. In the present example,trading platform 50 then fills the new displayed quantity of buy order14 a with 110 shares of product A from a corresponding sell order 16.Next, trading platform 50 again determines a replenishment amount basedon the formula indicated by trader 70 a. In the present example, thereplenishment amount is now 120 shares because the displayed quantity ofbuy order 14 a has been filled twice. Trading platform 50 repeats thisprocess until all of buy order 14 a is filled.

The foregoing example illustrates the use of a particular formula toreplenish the displayed quantity of a particular trading order 12. Itwill be understood that any suitable algorithm, formula, equation,table, or logic suitable for replenishing the displayed quantity of aparticular trading order 12 may be used without changing the process,method, or functionality of the present disclosure.

System 10 has certain technical advantages. Various embodiments ofsystem 10 may have none, some, or all of these advantages. One advantageis that platform 50 uses one or more formulas to replenish the displayedquantity of trading order 12, thus disguising the actions of trader 70associated with trading order 12. In addition, the trading platform 50may become more or less aggressive during the course of filling tradingorder 12, according to the formulas that are used.

Although system 10 is described above with reference to determining areplenishment amount for displayed quantity, it should be understoodthat system 10 could also determine a reserved quantity first, eitherrandomly or by using a formula, and then determine a replenishmentamount for the displayed quantity by subtracting the reserved quantityfrom the total quantity after each time a portion of the total quantityis filled.

FIG. 2 is a flowchart 100 that illustrates one embodiment of a methodfor replenishing trading orders 12. It should be understood thatadditional, fewer, or different operations may be performed in anysuitable order to achieve the intended functions without departing fromthe scope of this method. At step 102, trading platform 50 receives atrading order 12 specifying a total quantity of a product and a range ofvalues. At step 104, processor 56 randomly determines a displayedquantity (or reserved quantity) from the range of values. At step 106,processor 56 determines a reserved quantity (or displayed quantity)based on the determined displayed quantity (or reserved quantity) andthe total quantity of the trading order 12. Processor 56 communicatesthe trading order 12 having the determined displayed and reservedquantities, at step 108. Processor 56 determines that the displayedquantity of the trading order 12 was filled, at step 110. Processor 56reduces the total quantity of the trading order 12 by the amount of thedisplayed quantity that was filled, at step 112. Execution proceeds tostep 114 where processor 56 determines whether the total quantity of thetrading order 12 is filled. If not, execution returns to step 104. Ifso, execution terminates at step 116.

FIG. 3 is a flowchart 150 that illustrates one embodiment of a methodfor replenishing trading orders 12. It should be understood thatadditional, fewer, or different operations may be performed in anysuitable order to achieve the intended functions without departing fromthe scope of this method. At step 152, trading platform 50 receives atrading order 12 specifying a total quantity of a product, a displayedquantity of the product, and a reserved quantity of the product. At step154, trading platform 50 receives a range of values associated with thetrading order 12. Processor 56 communicates the trading order 12 at step156, and determines that the displayed quantity of the trading order 12was filled, at step 158. At step 160, processor 56 reduces the totalquantity of the trading order 12 by the amount of the displayed quantitythat was filled. Processor 56 randomly determines a displayed quantity(or reserved quantity) from the range of values, at step 162. Processor56 determines a reserved quantity (or displayed quantity) based on thedetermined displayed quantity (or reserved quantity) and the reducedtotal quantity, at step 164. At step 166, processor 56 communicatesanother trading order 12 having the determined displayed quantity andthe determined reserved quantity. Execution proceeds to step 168 whereprocessor 56 determines whether the total quantity of the trading order12 is filled. If not, execution returns to step 158. If so, executionterminates at step 170.

FIG. 4 is a flowchart 200 that illustrates one embodiment of a methodfor replenishing trading orders 12. It should be understood thatadditional, fewer, or different operations may be performed in anysuitable order to achieve the intended functions without departing fromthe scope of this method. At step 202, trading platform 50 receives atrading order 12 specifying a total quantity of a product and one ormore formulas. At step 204, processor 56 applies the formula (s) todetermine a displayed quantity (or reserved quantity). At step 206,processor 56 determines a reserved quantity (or displayed quantity)based on the determined displayed quantity (or reserved quantity) andthe total quantity of the trading order 12. Processor 56 communicatesthe trading order 12 having the determined displayed and reservedquantities, at step 208. Processor 56 determines that the displayedquantity of the trading order 12 was filled, at step 210. Processor 56reduces the total quantity of the trading order 12 by the amount of thedisplayed quantity that was filled, at step 212. Execution proceeds tostep 214 where processor 56 determines whether the total quantity of thetrading order 12 is filled. If not, execution returns to step 204. Ifso, execution terminates at step 216.

FIG. 5 is a flowchart 250 that illustrates one embodiment of a methodfor replenishing trading orders 12. It should be understood thatadditional, fewer, or different operations may be performed in anysuitable order to achieve the intended functions without departing fromthe scope of this method. At step 252, trading platform 50 receives atrading order 12 specifying a total quantity of a product, a displayedquantity of the product, and a reserved quantity of the product. At step254, trading platform 50 receives one or more formulas associated withthe trading order 12. Processor 56 communicates the trading order 12 atstep 256, and determines that the displayed quantity of the tradingorder 12 was filled, at step 258. At step 260, processor 56 reduces thetotal quantity of the trading order 12 by the amount of the displayedquantity that was filled. Processor 56 applies the formula (s) todetermine a displayed quantity (or reserved quantity), at step 262.Processor 56 determines a reserved quantity (or displayed quantity)based on the determined displayed quantity (or reserved quantity) andthe reduced total quantity, at step 264. At step 266, processor 56communicates another trading order 12 having the determined displayedquantity and the determined reserved quantity. Execution proceeds tostep 268 where processor 56 determines whether the total quantity of thetrading order 12 is filled. If not, execution returns to step 258. Ifso, execution terminates at step 270.

Although the present invention has been described in severalembodiments, a myriad of changes and modifications may be suggested toone skilled in the art, and it is intended that the present inventionencompass such changes and modifications as fall within the scope of thepresent appended claims.

FURTHER EMBODIMENTS

The following should be interpreted as embodiments, not claims.

A1. A system for submitting trading orders, comprising: a memoryoperable to store: a trading order comprising a total quantity of aproduct; and at least one formula to determine a displayed quantity forthe trading order; and a processor coupled to the memory and operableto: (a) apply the formula to determine the displayed quantity; (b)determine a reserved quantity based on the determined displayed quantityand the total quantity; and (c) communicate the trading order having thedetermined displayed quantity and the determined reserved quantity.

A2. The system of claim A1, wherein the processor is further operableto: (d) determine that the displayed quantity of the trading order wasfilled; (e) reduce the total quantity of the trading order by the amountof the displayed quantity that was filled; and (f) if the total quantityof the trading order is not yet filled, then repeating operations (a)through (e) until the total quantity of the trading order is filled.

A3. The system of claim A1, wherein the formula uses the total quantityof the trading order as a variable to determine the displayed quantityof the trading order.

A4. The system of claim A1, wherein the formula uses the number of timesoperations (c) through (e) have been performed as a variable todetermine the displayed quantity of the trading order.

A5. The system of claim A4, wherein the formula increases the displayedquantity of the trading order with each time that operations (c) through(e) is performed.

A6. The system of claim A4, wherein the formula decreases the displayedquantity of the trading order with each time that operations (c) through(e) is performed.

A7. The system of claim A1, wherein the reserved quantity is thedifference between the total quantity and the displayed quantity.

A8. The system of claim A1, wherein the displayed quantity determined bythe formula is a random value.

B9. A method for submitting trading orders, comprising: (a) receiving atrading order comprising a total quantity of a product; (b) receiving atleast one formula to determine a displayed quantity for the tradingorder; (c) applying the formula to determine the displayed quantity; (d)determining a reserved quantity based on the determined displayedquantity and the total quantity; and (e) communicating the trading orderhaving the determined displayed quantity and the determined reservedquantity.

B10. The method of claim B9, comprising: (f) determining that thedisplayed quantity of the trading order was filled; (g) reducing thetotal quantity of the trading order by the amount of the displayedquantity that was filled; and (h) if the total quantity of the tradingorder is not yet filled, then repeating operations (c) through (g) untilthe total quantity of the trading order is filled.

B11. The method of claim B9, wherein the formula uses the total quantityof the trading order as a variable to determine the displayed quantityof the trading order.

B12. The method of claim B9, wherein the formula uses the number oftimes operations (c) through (e) have been performed as a variable todetermine the displayed quantity of the trading order.

B13. The method of claim B12, wherein the formula increases thedisplayed quantity of the trading order with each time that operations(c) through (e) is performed.

B14. The method of claim B12, wherein the formula decreases thedisplayed quantity of the trading order with each time that operations(c) through (e) is performed.

B15. The method of claim B9, wherein the reserved quantity is thedifference between the total quantity and the displayed quantity.

B16. The method of claim B9, wherein the displayed quantity determinedby the formula is a random value.

C17. A method for submitting trading orders, comprising: (a) receiving atrading order comprising a total quantity of a product, a displayedquantity of the product, and a reserved quantity of the product; (b)receiving at least one formula to determine a subsequent displayedquantity for the trading order; (c) communicating the trading order; (d)determining that the displayed quantity of the trading order was filled;(e) reducing the total quantity of the trading order by the amount ofthe displayed quantity that was filled; (f) applying the formula todetermine the subsequent displayed quantity; (g) determining a reservedquantity based on the determined displayed quantity and the reducedtotal quantity; and (h) communicating another trading order having thedetermined displayed quantity and the determined reserved quantity.

C18. The method of claim C17, further comprising repeating operations(d) through (h) until the total quantity of the trading order is filled.

C19. The method of claim C17, wherein the formula uses the reduced totalquantity of the trading order as a variable to determine the subsequentdisplayed quantity of the trading order.

C20. The method of claim C17, wherein the formula uses the number oftimes operations (f) through (h) have been performed as a variable todetermine the subsequent displayed quantity of the trading order.

C21. The method of claim C20, wherein the formula increases thedisplayed quantity of the trading order with each time that operations(f) through (h) is performed.

C22. The method of claim C20, wherein the formula decreases thedisplayed quantity of the trading order with each time that operations(f) through (h) is performed.

C23. The method of claim C17, wherein the reserved quantity is thedifference between the total quantity and the displayed quantity.

D24. A system for submitting trading orders, comprising: a memoryoperable to store: a trading order comprising a total quantity of aproduct, a displayed quantity of the product, and a reserved quantity ofthe product; at least one formula to determine a subsequent displayedquantity for the trading order; and a processor coupled to the memoryand operable to: (a) communicate the trading order; (b) determining thatthe displayed quantity of the trading order was filled; (c) reduce thetotal quantity of the trading order by the amount of the displayedquantity that was filled; (d) apply the formula to determine thesubsequent displayed quantity; (e) determine a reserved quantity basedon the determined displayed quantity and the reduced total quantity; and(f) communicate another trading order having the determined displayedquantity and the determined reserved quantity.

D25. The system of claim D24, further comprising repeating operations(a) through (f) until the total quantity of the trading order is filled.

D26. The system of claim D24, wherein the formula uses the reduced totalquantity of the trading order as a variable to determine the displayedquantity of the trading order.

D27. The system of claim D24, wherein the formula uses the number oftimes operations (d) through (f) have been performed as a variable todetermine the subsequent displayed quantity of the trading order.

D28. The system of claim D27, wherein the formula increases thedisplayed quantity of the trading order with each time that operations(d) through (f) is performed.

D29. The system of claim D27, wherein the formula decreases thedisplayed quantity of the trading order with each time that operations(d) through (f) is performed.

D30. The system of claim D24, wherein the reserved quantity is thedifference between the total quantity and the displayed quantity.

E31. A method for submitting trading orders, comprising: (a) receiving atrading order comprising a total quantity of a product; (b) receiving atleast one formula to determine a reserved quantity for the tradingorder; (c) applying the formula to determine the reserved quantity; (d)determining a displayed quantity based on the determined reservedquantity and the total quantity; and (e) communicating the trading orderhaving the determined displayed quantity and the determined reservedquantity.

E32. The method of claim E31, comprising: (f) determining that thedisplayed quantity of the trading order was filled; (g) reducing thetotal quantity of the trading order by the amount of the displayedquantity that was filled; and (h) if the total quantity of the tradingorder is not yet filled, then repeating operations (c) through (g) untilthe total quantity of the trading order is filled.

E33. The method of claim E31, wherein the formula uses the totalquantity of the trading order as a variable to determine the reservedquantity of the trading order.

E34. The method of claim E31, wherein the formula uses the number oftimes operations (c) through (e) have been performed as a variable todetermine the reserved quantity of the trading order.

E35. The method of claim E34, wherein the formula increases the reservedquantity of the trading order with each time that operations (c) through(e) is performed.

E36. The method of claim E34, wherein the formula decreases the reservedquantity of the trading order with each time that operations (c) through(e) is performed.

E37. The method of claim E31, wherein the reserved quantity is thedifference between the total quantity and the displayed quantity.

E38. The method of claim E31, wherein the reserved quantity determinedby the formula is a random value.

F39. A method for submitting trading orders, comprising: (a) receiving atrading order comprising a total quantity of a product, a displayedquantity of the product, and a reserved quantity of the product; (b)receiving at least one formula to determine a subsequent reservedquantity for the trading order; (c) communicating the trading order; (d)determining that the displayed quantity of the trading order was filled;(e) reducing the total quantity of the trading order by the amount ofthe displayed quantity that was filled; (f) applying the formula todetermine the subsequent reserved quantity; (g) determining a displayedquantity based on the determined reserved quantity and the reduced totalquantity; and (h) communicating another trading order having thedetermined displayed quantity and the determined reserved quantity.

F40. The method of claim F39, further comprising repeating operations(d) through (h) until the total quantity of the trading order is filled.

F41. The method of claim F39, wherein the formula uses the reduced totalquantity of the trading order as a variable to determine the subsequentreserved quantity of the trading order.

F42. The method of claim F39, wherein the formula uses the number oftimes operations (f) through (h) have been performed as a variable todetermine the subsequent reserved quantity of the trading order.

F43. The method of claim F42, wherein the formula increases the reservedquantity of the trading order with each time that operations (f) through(h) is performed.

F44. The method of claim F42, wherein the formula decreases the reservedquantity of the trading order with each time that operations (f) through(h) is performed.

F45. The method of claim F39, wherein the reserved quantity is thedifference between the total quantity and the displayed quantity.

What is claimed is:
 1. A system for submitting trading orders,comprising: a processor coupled to an input device and a computernetwork; and a memory, coupled to the processor, that stores softwareinstructions which, when executed by the processor, direct the processorto: (a) receive from a user a trading order comprising a total quantityof a trading product offered for trade on an electronic exchange; (b)receive from the user a selection of a formula that can be used indetermining a replenishment quantity; (c) designate a displayed quantityof the trading order, the displayed quantity comprising a portion of thetotal quantity of the trading order; (d) determine a reserved quantitybased on the designated displayed quantity and an unfilled portion ofthe total quantity; (e) communicate the trading order to a server incommunication with the processor over the computer network; (f) receiveconfirmation that an amount of the trading order has been filled,wherein the confirmation is received from a server in communication withthe processor over the computer network; (g) update the total quantityof the trading order by reducing the total quantity by the amount of thetrading order that was filled as confirmed in operation (f); (h)determine a replenishment quantity for the trading order using theformula; (i) cause the designated displayed quantity to be updated basedon the determined replenishment quantity; and (j) repeat operations (d)through (i).
 2. The system of claim 1, in which the act of receiving aselection of a formula comprises: receiving from the user a selection ofthe formula from among a plurality of different replenishment formulas,and in which the act of the act of determining a replenishment quantityof the trading order comprises using the user-selected formula toincrease the replenishment quantity of the trading order each time thatoperations (b) through (g) are performed, such that each successivereplenishment quantity is greater than all previously determinedreplenishment quantities of the trading order.
 3. The system of claim 1,in which the instructions, when executed by the processor, furtherdirect the processor to: prior to repeating operations (c) through (g),receive from the user a lower value and a higher value defining a range,the higher value being greater than the lower value and less than thetotal quantity, in which the act of determining a replenishment quantityof the trading order comprises using the formula to determine areplenishment quantity within the range.
 4. The system of claim 1, inwhich the displayed quantity is equal to the replenishment quantity. 5.The system of claim 1, wherein, before operations (c) through (g) arerepeated, the reserved quantity is equal to the difference between thetotal quantity and the displayed quantity.
 6. The system of claim 1, inwhich the replenishment quantity determined using the formula is arandom value.
 7. The system of claim 1, in which the formula uses thereduced total quantity of the trading order as a variable to determinethe replenishment quantity of the trading order.
 8. A method forsubmitting trading orders, comprising: (a) receiving, by at least oneprocessor, from a user a trading order comprising a total quantity of atrading product offered for trade on an electronic exchange; (b)receiving, by the at least one processor, from the user a selection of aformula that can be used in determining a replenishment quantity; (c)designating, by the at least one processor, a displayed quantity of thetrading order, the displayed quantity comprising a portion of the totalquantity of the trading order; (d) determining, by the at least oneprocessor, a reserved quantity based on the designated displayedquantity and an unfilled portion of the total quantity; (e) causing, bythe at least one processor, the trading order to be communicated to aserver in communication with the processor over the computer network;(f) receiving, by the at least one processor, confirmation that anamount of the trading order has been filled, wherein the confirmation isreceived from a server in communication with the processor over thecomputer network; (g) updating, by the at least one processor, the totalquantity of the trading order by reducing the total quantity by theamount of the trading order that was filled as confirmed in operation(f); (h) determining, by the at least one processor, a replenishmentquantity for the trading order using the formula; (i) causing, by the atleast one processor, the designated displayed quantity to be updatedbased on the replenishment quantity; and (j) repeating, by the at leastone processor, operations (d) through (i).
 9. The method of claim 8, inwhich act of receiving a selection of a formula comprises: receivingfrom the user a selection of the formula from among a plurality offormulas; and in which the act of determining a replenishment quantityof the trading order comprises using the user-selected formula todecrease the replenishment quantity of the trading order each time thatoperations (b) through (g) are performed, such that each successivereplenishment quantity is less than all previously determinedreplenishment quantities of the trading order.
 10. The method of claim8, in which the instructions, when executed by the processor, furtherdirect the processor to: prior to repeating operations (c) through (g),receive from the user a lower value and a higher value defining a range,the higher value being greater than the lower value and less than thetotal quantity, in which the act of determining a replenishment quantityof the trading order comprises using the formula to determine areplenishment quantity within the range.
 11. The method of claim 8, inwhich the displayed quantity is equal to the replenishment quantity. 12.The method of claim 8, wherein, before operations (c) through (g) arerepeated, the reserved quantity is equal to the difference between thetotal quantity and the displayed quantity.
 13. The method of claim 8, inwhich the replenishment quantity determined using the formula is arandom value.
 14. The method of claim 8, in which the formula uses thereduced total quantity of the trading order as a variable to determinethe replenishment quantity of the trading order.
 15. A method forsubmitting trading orders, comprising: (a) receiving, by at least oneprocessor, from a user a trading order comprising a total quantity of atrading product offered for trade on an electronic exchange, the tradingorder being received by at least one processor coupled to an inputdevice and a computer network; (b) receiving, by the at least oneprocessor, from the user a selection of a formula from among a pluralityof formulas, the formula comprising a formula that can be used indetermining a replenishment quantity; (c) receiving, by the at least oneprocessor, from the user a lower value and a higher value defining arange, the higher value being greater than the lower value and less thanthe total quantity; (d) designating by the at least one processor adisplayed quantity of the trading order, the displayed quantitycomprising a portion of the total quantity of the trading order; (e)determining by the at least one processor a reserved quantity based onthe designated displayed quantity and an unfilled portion of the totalquantity; (f) communicating by the at least one processor the tradingorder to a server in communication with the processor over the computernetwork; (g) receiving by the at least one processor confirmation thatan amount of the trading order has been filled, wherein the confirmationis received from a server in communication with the processor over thecomputer network; (h) updating by the at least one processor the totalquantity of the trading order by reducing the total quantity by theamount of the trading order that was filled as confirmed in operation(h) (g); (i) determining by the at least one processor a replenishmentquantity for the trading order within the range using the formula; (j)causing by the at least one processor the designated displayed quantityto be updated based on the determined replenishment quantity; and (k)repeating operations (e) through (j) until a remaining quantity of thetrading order that has not been filled is less than a most recentlydetermined replenishment quantity of the trading order.
 16. The methodof claim 15, in which the displayed quantity is equal to thereplenishment quantity, and wherein the reserved quantity is thedifference between the total quantity and the displayed quantity, and inwhich, during each instance of repeating operations (d) through (i), theact of determining a replenishment quantity of the trading ordercomprises using the formula to decrease the replenishment quantity ofthe trading order with each time that operations (d) through (i) areperformed, such that each successive replenishment quantity is less thanall previously determined replenishment quantities of the trading order.17. The method of claim 16, in which the replenishment quantitydetermined using the formula is a random value, and in which the formulauses the reduced total quantity of the trading order as a variable todetermine the replenishment quantity of the trading order.
 18. A methodfor submitting trading orders, comprising: (a) receiving from a user atrading order comprising a total quantity of a trading product offeredfor trade on an electronic exchange, the trading order being received byat least one processor coupled to an input device and a computernetwork; (b) receiving from the user a selection of a formula from amonga plurality of formulas, the formula comprising a formula that can beused in determining a replenishment quantity; (c) receiving from theuser a lower value and a higher value defining a range, the higher valuebeing greater than the lower value and less than the total quantity; (d)designating by the at least one processor a displayed quantity of thetrading order, the displayed quantity comprising a portion of the totalquantity of the trading order; (e) determining by the at least oneprocessor a reserved quantity based on the designated displayed quantityand an unfilled portion of the total quantity; (f) communicating by theat least one processor the trading order to a server in communicationwith the processor over the computer network; (g) receiving by the atleast one processor confirmation that an amount of the trading order hasbeen filled, wherein the confirmation is received from a server incommunication with the processor over the computer network; (h) updatingby the at least one processor the total quantity of the trading order byreducing the total quantity by the amount of the trading order that wasfilled as confirmed in operation (i); and (i) determining by the atleast one processor a replenishment quantity for the trading order usingthe formula; and (j) repeating operations (d) through (i) until aremaining quantity of the trading order that has not been filled is lessthan a most recently determined replenishment quantity of the tradingorder.
 19. The method of claim 18, in which the displayed quantity isequal to the replenishment quantity, and wherein the reserved quantityis the difference between the total quantity and the displayed quantity,and in which, during each instance of repeating operations (d) through(i), the act of determining a replenishment quantity of the tradingorder comprises using the formula to increase the replenishment quantityof the trading order with each time that operations (d) through (i) areperformed, such that each successive replenishment quantity is greaterthan all previously determined replenishment quantities of the tradingorder.
 20. The method of claim 19, in which the replenishment quantitydetermined using the formula is a random value, and in which the formulauses the reduced total quantity of the trading order as a variable todetermine the replenishment quantity of the trading order.